P.F 9-31A Accounting for uncollectible accounts using the allowance method (percent-of-sales) and reporting receivables on the balance sheet Delta Watches completed the following selected transactions during 2024 and 2025: 2024 Dec. 31 Estimated that bad debts expense for the year was 2% of credit sales of $450,000 and recorded that amount as expense. The company uses the allowance method. 31 Made the closing entry for bad debts expense. 2025 Jan, 17 Sold merchandise inventory to Mack Smith, 5400 , on account. Ignore Cost of Goods Sold. Jun. 29 Wrote off Mack Smith's account as uncollectible after repeated efforts to collect from him. Aug. 6 Received $400 from Mack Smith, along with a letter apologizing for being so late. Reinstated Smith's account in full and recorded the cash receipt. Dec. 31 Made a compound entry to write off the following accounts as uncollectible: Cam Carter, $1,400; Mike Venture, $1,200; and Russell Reeves, $400. 31 Estimated that bad debts expense for the year was 2% of credit sales of $510,000 and recorded the expense. 31 Made the closing entry for bad debts expense. 1. Open T-accounts for Allowance for Bad Debts and Bad Debts Expense, assuming the accounts begin with a zero balance. Record the transactions in the general joumal (omit expianations) and post to the two T-acoounts. 2. Assume the December 31 . 2025, balance of Accounts Recelvable is $136,000. Show how net accounts recelvable would be reported on the baiance sheet at that date Learning Objectives 1,3 2. NotAR $119,800